Thanks to the findings of a recently conducted report, evidence has been unearthed that a rising number of car insurance groups have been adopting a policy of sneaking in additional fees that their customers have had to begin paying.
This practise, the report found, has been a contributing factor to the rising cost of even discount car insurance, as customers have found it more costly and difficult year after year for the past six years to continue to pay these sneaky fees and additional charges on their motor car insurance policies.
The research was conducted to showcase how an ever rising number of car insurance brokers were instituting these new charges. The average cost incurred by customers who wish to make adjustments to their policies has been rising steadily since 2004, with the number of car insurance groups that institute the charges and fees skyrocketing over the past six years.
The research findings show that in 2004, approximately 22 per cent of car insurers would charge their customers a fee for cancelling their policy early, while today that figure now stands at 70 per cent; likewise six years ago only 17 per cent charged customers who wished to change their policy details, while today that figure stands at a mammoth 67 per cent.
The costs associated with changing policies or early cancellations can be quite steep currently, with some fees averaging nearly twice their original figures, according to the Defaqto-compiled research. There are some car insurers that will go as far as to charge fees for setup and renewal for customers that desire cover.
Defaqto’s general insurance insight analyst Mike Powell commented on the findings, stating that the trend for car insurers to begin charging administrative fees has become significant and noticeable, altering the market from standard services that were included in what a consumer could expect to get for no additional charge to a premium service added on to already rising car insurance rates.